Indian Zee Entertainment to merge with Sony India
BENGALURU, Sept. 22 (Reuters) – Indian media and entertainment giant Zee Entertainment Enterprises Ltd (ZEE.NS) announced on Wednesday that its board of directors has approved in principle its merger with Sony Pictures Networks India (SPNI).
Zee, which has a presence in broadcast and digital media with brands such as Zee TV, has come under pressure from leading investors for a management reshuffle, including the exit of chief executive, Punit Goenka, from the board of directors. Read more
Zee said in an exchange brief that the company and SPNI have entered into a non-binding list of conditions to bring together their linear networks, digital assets, production operations and program libraries.
Under the proposed deal, Zee shareholders will own approximately 47.07% of the capital and the remainder of the merged entity will be owned by Sony India shareholders.
The term sheet gives a period of 90 days, during which the two firms will carry out mutual diligence and finalize the final agreements, the filing noted.
The merged entity will be publicly traded in India and Goenka will be its managing director and managing director. Zee said the merger proposal would be presented to shareholders for approval.
Report by Rama Venkat in Bengaluru; Editing by Arun Koyyur
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